Facing serious financial reverses especially when you’re engaged in a business opportunity is something you have to come to terms with. You cannot afford to break down because of this. Indeed, it is a very crucial thing to happen to your career in particular and your productive life in general, but this doesn’t mean that you are without solutions. You can always file for bankruptcy when your financial situation seems to be at its bleakest. With successful bankruptcy proceedings, you will be discharged from all your outstanding obligations and have a fresh start.

Now if you desire to file for bankruptcy in the state of Arizona, you are actually given two options. You can file your petition either under Chapter 7 or Chapter 13 of the United States federal bankruptcy laws. Chapter 7 is said to be the faster way to accomplish your bankruptcy proceedings and it is usually available to everyone. From individuals to married couples and even juridical persons such as corporations and partnerships, this type of bankruptcy can be pursued. However, there are certain mandatory requirements you have to comply with before you can be eligible for bankruptcy under this Chapter. Let’s try to explore them further.

Under the present laws governing a Chapter 7 bankruptcy, you must first undergo a so-called “means test” to determine your eligibility. With this test, your income and expenses as well as all your existing assets will be evaluated carefully to determine whether or not they can still cover for your outstanding debts. Your average income will also be assessed in comparison to the standard in your state. If it can be seen that you in fact earn less than the median income for a family of your size in your state, then a Chapter 7 bankruptcy can be a feasible option. Moreover, you will also be made to undergo a mandatory credit counselling and budget analysis before filing your petition. This is where you will definitely need the assistance of an experienced bankruptcy attorney in Arizona to help you arrive at decisions which would be most favorable for you given your current financial situation.

Apart from the bankruptcy petition, you will also need to prepare a Statement of Financial Affairs as well as a complete list of all your creditors. You must also provide the court with a detailed description of your current sources income and assets, your personal and real properties whether encumbered or not, tax income returns for the past two years, and a detailed list of your monthly expenses. Hence, the role that a bankruptcy attorney plays in this case is very crucial. It’s imperative that you should properly search for bankruptcy attorneys in Arizona and engage the services of one who is competent and dedicated enough to set the proper parameters for your petition.